What Is A Rental Or Investment Property Hard Money Loan?

I wanted to inform you as to what a Hard Money Rental Property or Investment Property Loan is.  We use these terms interchangeably.  They can be smaller size loans or jumbo size loans ($417,000 and up).

Click here to see our short but informative video here.

A Rental Property loan is the most commonly used Hard Money program.  Other popular Hard Money loan programs are Bridge loans, Temporary loans, Commercial loans and those loans for purchase or refinance of a principle residence.    


A rental property loan is always secured, meaning a home or condo or commercial unit guarantees the payment of the loan.  The length of the loan can vary from 12 months to 5 years and possibly longer in some circumstances. 


This loan type will generally have a prepayment penalty applied to it, which can vary Lender to Lender.  It will also require a minimum equity of 25% in the case of a refinance or a minimum down payment of 25% if a purchase. 


Some instances of when you might use this type of loan are:

  • You want to buy a rental property.    
  • You want to refinance an existing rental property to buy another one.  Or do some renovations to it. 
  • You need cash for some business purpose.  Say you are buying a business or need capital for an existing business.


Rates and fees for such a loan can vary by Lender.  They are generally based on the loan to value (loan amount in relation to value of the property) and the size of the loan.  Other factors include the condition of the property and the circumstances of the Borrower. 


If the Rental Property is in the state of California you can find out about our rates and fees by checking out the Rate Sheet on our website: www.Sunpacmortgage.com .  Also feel free to call in to our office at 707-523-2099 and we will let you know what you might qualify for. 


I hope this has helped you understand more about what a Hard Money Rental Property or Investment Property Loan is!



Ken – Another Guy in the White Hat

Lead Loan Originator at family owned & operated Sun Pacific Mortgage and Real Estate, serving all of California since 1988 with it's Hard Money financing programs!

CA Bur RE ID #01000559. NMLS ID #289456

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